AØKA08214U Summerschool 2018: The
Economic History of Europe

This comprehensive course offers theoretical and historical
insights into the evolution of Europe. We start by tracing the
continent’s emergence from being a technological and economic
backwater at the end of the first millennium to being able to match
the advanced Muslim and Chinese civilizations around 1500. We
continue by following the economic advances as Europe forged ahead,
becoming the leader of the Industrial Revolution and the source of
numerous technological innovations, which were diffused
internationally through trade and colonial domination, but with
varying impact on the rest of the world. It is shown that Europe
was unique in fostering a mentality of rational inquiry into the
laws of nature which led to an industrial enlightenment. A special
focus will be on the last 200 years of dramatic economic
development, when a remarkable increase in income has been
accompanied by recurrent crises and increased world inequality but
decreasing domestic inequality. This has generated a variety of
responses such as the modern macroeconomic stabilization policies,
the Welfare State, and attempts to tame the disruptive impact of
financial turbulence and unemployment. Although the last 150 years
have been a period of remarkable growth, they have also been a
period of recurrent crises which require explanation.

Lecture Plan

1. The making of Europe. How Europe
developed into an integrated economic region with intensive trade
and cultural similarities across the continent despite endemic
political and military conflicts. (Chapter 1)

2. The secrets of pre-industrial
growth. Gains from specialization through division of
labour before the Industrial Revolution. The restoration of
monetary order and international trade. The first general purpose
technology at work: water and wind mills. (Chapter 2)

3. The dynamics of population
growth. Thomas Malthus versus Adam Smith. The
exceptional family planning practiced in Europe (before the pill)
which helped the continent escape poverty. (Chapter 3)

4. When and why Europe took the lead. Slow
but persistent growth in Europe allowed the continent to forge
ahead several centuries before the Industrial Revolution. How to
measure economic growth in poorly documented economies. Was the
Industrial Revolution really a Revolution? (Chapter 4
and section 1 in chapter 6)

5. Firms, farms and co-operatives. The
institutional diversity in economic progress with a special focus
on the advantages of co-operative enterprises in Scandinavia.
(Chapter 5)

6. Historical foundations of modern economic
growth. Science and technological catch-up. Why are
some nations pioneers and others late-comers in the modernization
process? (Chapter 6)

7. The origin and development of money and
banks. The anatomy of banking crises and why we have
to live with them. (Chapter 7)

8. Trade, tariffs and growth. The evolution of
the comparative advantage argument for free trade. How trade policy
affects growth. What does the historical record teach us about the
wisdom of adopting protectionist measures? (Chapter 8)
9. International monetary systems in history. Why
an international monetary system is necessary. The policy choices
available to an open economy. The history of international monetary
regimes. The Eurozone crisis in historical perspective. (Chapter
9)

10. From the minimal state to the Welfare State in the
20th century. Economic policy,
inflation and unemployment. Do austerity policies work? A
comparison between the interwar period (1919-1939) and the present
crises in the European Union. (Chapter 10)

11. Trends in inequality between and within
nations. We trace inequality from the Roman era to
the present. Has the trend towards increasing equality within
nations been broken and what is happening to world inequality?
(Chapter 11)

12. Globalization is not new! What
globalization does to your welfare and the welfare of poor nations.
Welfare effects of trade and foreign investments. (Chapter
12)

Identify, explain, and reflect upon the main topics within
economic history

Understand the difference between the forces at work in the
pre-industrial era, when division of labour and trade were major
factors in economic development, and science-based technological
progress in the modern era

Evaluate the impact of the constraints of resources on economic
growth and the determinants of population growth in the
pre-industrial as well as the modern era

Understand the institutional preconditions for transfer of
knowledge and convergence of income levels across nations in
Europe

Explain and reflect upon the economic history of money

Understand the forces which shape trade policies (free trade vs.
protectionism) and know the general outline of the phases of trade
regimes during the last 200 years

Understand the mechanisms and workings of international monetary
orders such as the Gold Standard, the Bretton Woods system and the
euro

Describe the changes in inequality over time, and explain how to
measure this

Describe and reflect upon the history of globalization and the
challenges it presents

Understand the role and impact of Europe in a global
economy

Skills:

Use simple data methods to analyse historical data

Apply economic theory as it relates to economic history

Read and report from scholarly journal articles

Competences:

Explain the main topics in economic history

Apply models and theories related to economic history

Work with and process historical time series such as wage,
price, and population data

Economics at the level of
first year Principles of Economics is recommended, however
ambitious students in history and the social sciences can follow
the course since basic economic concepts are explained in the
textbook.

Participating students must be able and willing to write and speak
in English.

Criteria for exam assesment

Students are assessed on the extent to which they master the
learning outcome for the course.

To receive the top grade, the student must with no or only a few
minor weaknesses be able to demonstrate an excellent performance
displaying a high level of command of all aspects of the relevant
material and can make use of the knowledge, skills and competencies
listed in the learning outcomes.